The average rate on a 30-year fixed U.S. mortgage rose to 7.03% this week from 6.95% a week earlier, Freddie Mac said Thursday. That is the first weekly reading above 7% since January 2025, according to NPR (opens in new tab), The Guardian (opens in new tab), and Fox Business (opens in new tab).
The 15-year fixed average also moved up, to 6.42% from 6.26%. A year ago the 30-year benchmark sat near 6.3%, the outlets reported.
Coverage tied the increase to a climb in the 10-year Treasury yield, which mortgage pricing tends to track, as markets weigh inflation worries, Federal Reserve tightening, and energy costs linked to the Iran war. The Fed raised its policy rate by a quarter point last week, and many officials have projected at least one more increase before the end of the year, according to the cited reports.
Sales of previously owned homes fell 2% in August. Economists quoted in the coverage said crossing the 7% line adds a psychological hurdle for buyers, on top of the bigger monthly payments it brings, in a housing market that was already tight.
The Event Log reports the Freddie Mac survey figures as the confirmed event. Views on how the 7% threshold will change buyer behavior are economists’ assessments, not measured results.